USTR Proposes 10-12.5% Tariffs for 60 Countries Trading in Forced Labor Goods
The Office of the U.S. Trade Representative (USTR) on June 2 announced it has determined under Section 301 of the 1974 Trade Act that the actions, policies, and practices of 60 countries show they are trading in forced labor-made goods which if imported into the U.S. should be subject to 10-12.5% tariffs.
USTR based its findings on its report, Acts, Policies, and Practices of Various Economies Related to the Failure to Impose and Effectively Enforce a Prohibition on the Importation of Goods Produced with Forced Labor.
“Some trading partners have taken initial steps to prevent the importation of forced labor goods, including through USMCA and commitments in Agreements on Reciprocal Trade,” said U.S. Trade Representative Jamieson Greer in a statement. “However, each of our trading partners must do more to ensure that trade does not perversely encourage and entrench forced labor globally.”
USTR has proposed its action for public comments in a Federal Register notice.
Specifically, USTR proposes additional duties on all products of the investigated economies, except as provided in Annex A to the Federal Register notice.
For economies that impose a forced labor import prohibition, that have committed to impose and enforce such a prohibition through an Agreement on Reciprocal Trade, or economies that have imposed a partial regime with the effect of preventing the importation of certain forced labor goods, USTR proposes 10% as the rate of additional duties.
For all other economies, USTR proposes 12.5% as the rate of additional duty.
USTR also proposes a textile mechanism that would allow for a certain volume of apparel and textile imports from certain economies to enter the U.S. at a reduced Section 301 tariff rate.
To be assured of consideration, interested persons should submit requests to appear at the hearings, along with a summary of testimony by June 22. Written comments are due by July 6. USTR will hold hearings about the proposed actions in these investigations on July 7.
For further questions or discussion, please contact your South East World Wide (Chicago), Ltd. Sales Representative.